Keynes suggested that decisions to consume and save were based on ?
A. previous decisions
B. absolute income
C. relative income
D. permanent income
Miscellaneous Economics Mcqs
The fraction of change in income that is consumed or spend is called ?
The fraction of change in income that is consumed or spend is called ?
A. the marginal propensity of expenditure
B. the marginal propensity to save
C. the average propensity to consume
D. the marginal propensity to consume
A variable whose value is determined by the model of which it is a part is termed ?
A variable whose value is determined by the model of which it is a part is termed ?
A. exogenous
B. constant
C. endogenous
D. independent
Open Market Operations occur when the government ?
Open Market Operations occur when the government ?
A. Reduces the interest rate
B. Buys and sells bonds and securities
C. Increases taxation
D. Increase the exchange rate
The speculative demand for money occurs when ?
The speculative demand for money occurs when ?
A. Individuals hold money just in case an emergency happens
B. Individuals hold money to buy things
C. Individuals hold money rather than other assets because they are worried about the price of the other assets falling
D. Individuals hold money to shop
A reduction in the money supply is likely to ?
A reduction in the money supply is likely to ?
A. Reduce the interest rate
B. Increase the interest rate
C. Increase inflation
D. Decrease deflation
A fall in interest rates is likely to ?
A fall in interest rates is likely to ?
A. Increase aggregate demand
B. Increase savings
C. Decrease consumption
D. Decrease exports
The precautionary demand for money is ?
The precautionary demand for money is ?
A. An idle because
B. An active balance
C. Directly related to interest rates
D. Inversely related to income
If an increase in investment leads to a bigger increase in national income this called the ?
If an increase in investment leads to a bigger increase in national income this called the ?
A. Accelerator
B. Aggregate demand
C. Monetarism
D. Multiplier
Investment depends mainly on ?
Investment depends mainly on ?
A. Past levels of income
B. Future expected profits
C. Present national income levels
D. Historic data